EXHIBIT 10.1


 


STOCK REPURCHASE AGREEMENT


 


 THIS STOCK REPURCHASE
AGREEMENT (this “Agreement”) is made and entered into as of November 19, 2015, by and among ASB Bancorp, Inc.,
a North Carolina Corporation (the “Company”), and FVP Master Fund, L.P., a Cayman Islands exempted limited partnership
(the “Seller”).


 


WITNESSETH:


 


WHEREAS, as of the
date hereof, Seller is the beneficial owner of 421,770 shares of issued and outstanding common stock, par value $0.01 per share,
of the Company, which represents 9.574% of the Company's issued and outstanding common stock (the “Shares”);
and


 


WHEREAS, Seller desires
to sell, and the Company desires to purchase, the Shares for the consideration and on the terms set forth in this Agreement.


 


NOW, THEREFORE, in
consideration of the foregoing premises and the mutual promises, covenants and agreements hereinafter set forth, the parties hereto
agree as follows:


 


ARTICLE I


 


REPURCHASE OF THE SHARES


 


1.1 Repurchase.
At the Closing (as hereinafter defined), upon the terms and subject to the conditions of this Agreement, Seller agrees to sell,
transfer, convey, assign, and deliver the Shares to the Company, and the Company agrees to purchase and accept delivery of the
Shares from the Seller, in exchange for the payment by the Company to Seller of a cash purchase price equal to Twenty-Six Dollars
and Fifty Cents ($26.50) per Share (the “Purchase Price”).


 


1.2 Closing.
Subject to the terms set forth in this Agreement, the closing of the purchase and sale of the Shares (the “Closing”)
shall take place on November 19, 2015 at 10:00 a.m. Eastern Time at the offices of Nelson Mullins Riley & Scarborough LLP,
Poinsett Plaza, Suite 900, 104 South Main Street, Greenville, South Carolina 29601, or such later date as may be agreed to by the
parties. At the Closing, the Company shall pay the Purchase Price to Seller, by wire transfer of immediately available funds pursuant
to written instructions provided in advance by Seller. Immediately following the confirmation of receipt of the wire transfer of
the Purchase Price to Seller’s account, Seller shall deliver the Shares to the Company or its authorized agents.


 


ARTICLE II


 


REPRESENTATIONS AND WARRANTIES OF
THE COMPANY


 


The Company represents
and warrants to Seller as follows:


 


2.1 Organization.
The Company is a corporation duly organized, validly existing, and in good standing under the laws of the State of North Carolina.


 






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2.2 Authorization.
The Company has the full legal right, corporate power, and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. This Agreement has been duly authorized, executed, and delivered by the Company, and all necessary
action has been taken to make this Agreement a legal, valid, and binding obligation of the Company, enforceable in accordance with
its terms.


 


2.3 Approvals and
Consents. No consents, authorizations, waivers, filings, registrations or approvals (including regulatory approvals) that have
not been previously obtained are required in connection with the execution and delivery of this Agreement by the Company, the consummation
of the transactions contemplated hereby or the performance by Company of its obligations hereunder.


 


2.4 No Other Representations
or Warranties. Except for the representations and warranties contained in this Agreement, neither the Company nor any other
person on behalf of the Company makes any other express or implied representation or warranty with respect to the Company or with
respect to any other information provided by or on behalf of the Company.


 


ARTICLE III


 


REPRESENTATIONS AND WARRANTIES OF
SELLER


 


Seller represents and
warrants to the Company as follows:


 


3.1 Organization.
Seller is an exempted limited partnership duly organized, validly existing, and in good standing under the laws of the Cayman Islands.


 


3.2 Authorization.
Seller has the full legal right, power, and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly authorized, executed, and delivered by the Seller, and all necessary action has
been taken to make this Agreement a legal, valid, and binding obligation of the Seller, enforceable in accordance with its terms.


 


3.3 Ownership of
the Shares. Seller is the sole record owner of the Shares. There are no contracts, commitments, agreements, understandings
or arrangements of any kind (contingent or otherwise) relating to the sale or transfer by Seller of any of its Shares.


 


3.4 Title. Seller
has good, valid, and marketable title to its Shares, free and clear of any and all security interest, pledge, lien, charge, voting
agreement, proxy, mortgage, option, adverse claim or ownership or use, or any other encumbrance of any kind, character, or description
whatsoever.


 


3.5 Approvals and
Consents. No consents, authorizations, waivers, filings, registrations or approvals that have not been previously obtained
are required in connection with the execution and delivery of this Agreement by Seller, the consummation of the transactions contemplated
hereby or the performance by Seller of its obligations hereunder.


  



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3.6 Information
Concerning the Company. Seller acknowledges that the Company may be in possession of material non-public information about
the Company and its subsidiaries not known to Seller. Seller hereby waives any and all claims and causes of action now or hereafter
arising against the Company based upon or relating to any alleged non-disclosure of such information and further covenants not
to assert any claims against or to sue the Company or any of its directors, officers, employees, partners, agents or affiliates
for any loss, damage or liability arising from or relating to its offer and sale of Seller’s Shares pursuant to this Agreement
arising out of, based upon or in connection with any alleged non-disclosure of such information. It is understood and agreed that
neither the Company nor Seller makes any representation or warranty to the other whatsoever with respect to the business, condition
(financial or otherwise), properties, prospects, creditworthiness, status or affairs of the Company or any of its subsidiaries,
or with respect to the value of the Shares.


 


3.7 No Brokers.
Seller is not a party to any agreement, arrangement, or understanding with any person that could result in the Company having any
obligation or liability for any brokerage fees, commissions, or other similar fees or expenses relating to this Agreement or the
transactions contemplated hereby.


 


ARTICLE IV


 


CLOSING CONDITIONS


 


4.1 Conditions to
the Company’s Obligations. The obligations of the Company under Article I to purchase the Shares at the Closing are subject
to the satisfaction of the following conditions:


 


		(a)	The representations and warranties made by Seller shall
be true and correct in all material respects as of the Closing.



 


4.2 Conditions to
Seller’s Obligations. The obligations of Seller under Article I to sell the Shares at the Closing are subject to the
satisfaction of the following conditions:


 


		(a)	The representations and warranties made by the Company
shall be true and correct in all material respects as of the Closing.



 


ARTICLE V


 


MISCELLANEOUS


 


5.1 Expenses.
The Company and Seller shall each bear their own expenses incurred in connection with this Agreement and the consummation of the
transactions contemplated hereby.


 


5.2 Specific
Performance. Seller and the Company agree that money damages are inadequate and that each will suffer irreparable harm
with respect to a failure to abide by any covenant made under the terms of this Agreement or any requirement under this
Agreement relating to or affecting the sale of the Shares, and that, accordingly, in addition to any money


 
  






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damages which
might be awarded with reasonable certainty, each shall be entitled to demand specific performance or to seek injunctive
relief whether with regard to a breach or contemplated breach. All rights, remedies and benefits specified in this Agreement,
including, but not limited to the rights, remedies and benefits contained in this Section 5.2 are not exclusive of any
rights, remedies or benefits which any party may otherwise have.


  


5.3 Nondisparagement.
During the period from the date of this Agreement to the second anniversary hereof, Seller and its affiliates and associates agree
not to disparage the Company or any officers, directors (including director nominees), or employees of the Company or its affiliates
or subsidiaries in any public or quasi-public forum, and the Company and its affiliates and subsidiaries agree not to disparage
Seller or any officers, partners, or employees of Seller or its affiliates or associates in any public or quasi-public forum.


 


5.4 Notices.
All notices and other communications required hereunder shall be in writing and delivered personally, delivered by a recognized
next-day courier service or mailed by registered or certified mail. All such notices and communications shall be delivered as set
forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice:


 


(a) if to the Company,
to:


 





	 	ASB Bancorp, Inc.
	 	P.O. Box 652
	 	Asheville, North Carolina 28802
	 	Attention: Suzanne DeFerie







 


with a copy (which
shall not constitute notice) to:


 





	 	Nelson Mullins Riley & Scarborough LLP
	 	Poinsett Plaza, Suite 900
	 	104 South Main Street
	 	Greenville, South Carolina 29605
	 	Attention: Neil E. Grayson







  


(b) if to Seller, to:


 





	 	Firefly Value Partners, LP
	 	601 West 26th Street
	 	Suite 1520
	 	New York, NY 10001
	 	Attention: Evan Gelacek







 


5.5 Governing Law.
This Agreement shall be construed, performed, and enforced in accordance with, and governed by, the laws of the State of North
Carolina, without giving effect to the principles of conflicts of laws thereof.


 






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5.6 Assignment.
Neither the Company nor Seller shall transfer or assign this Agreement or any of its rights, interests, or obligations hereunder,
in whole or in part, whether voluntarily, by operation of law or otherwise, without the prior written approval of the other party.
Any assignment made in violation of this Section 5.6 shall be void.


 


5.7 Severability.
The invalidity of any term or terms of this Agreement will not affect any other term of this Agreement, which will remain in full
force and effect.


 


5.8 Counterparts.
This Agreement may be executed simultaneously in counterparts, both of which shall be deemed an original, but all counterparts
so executed will constitute one and the same agreement.


 


 


 


[Signatures on the following page]


 






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IN WITNESS WHEREOF,
this Stock Repurchase Agreement has been duly executed on behalf of each of the parties hereto as of the day first above written.


 


COMPANY:


 


ASB Bancorp, Inc. 


  





	By:	/s/ Suzanne DeFerie	 
	Name: 	Suzanne DeFerie	 
	Title: 	President and CEO	 







 





SELLER:


 





FVP Master Fund, L.P.    


 





	By:	/s/ Dan Jemal	 
	Name: 	Dan Jemal	 
	Title:	Chief Financial Officer